A well managed inventory system plays an important role in the in determining the survival and efficiency of every organization. This study examines the effect of inventory management on financial performance in the Nigerian service sector. The study adopts the explanatory research design with sample of four (4) firms drawn purposively from the thirty two (30) firms listed under Service sector of the Nigerian Stock Exchange. Data sourced from the annual financial reports of the selected firms were analyzed using the ordinary least square regression analysis method. Hypotheses were tested at 5% level of significance. The finding establishes that there is a moderate positive linear relationship, although non-significant, between the independent variable (inventory turnover) proxy for inventory management and the dependent variable (profit after tax) proxy for financial performance. The study recommends that inventory management be taken with keen attention if service firms are to maximize its positive effect on performance.
With the wide spread of Internet and rapid development of e-commerce, online shopping is growing rapidly and continuously. However, many consumers still think that there are trust issues in purchasing in website. This research studies the factors in affecting trust issues towards online shopping in Hong Kong. There are six constructs proposed in this research. The independent variables include fulfillment, privacy, responsiveness, e-word of mouth, and satisfaction whilst the dependent variable is trust. Questionnaires were distributed at the exits of the MTR stations in Hong Kong. Total 414 responses were collected. According to the multiple regression test results, they show the supportive evidence for the components of fulfillment, privacy towards trust whilst responsiveness, e-word of mouth, satisfaction are not supported.
Consumption plays a significant role in determining the size of the multiplier and the dynamic effects of the economy shock. It also constitutes the largest component of the aggregate expenditure of an economy. As a result, economists have propounded theories in a bid to explain the determinants of consumption. These theories include the absolute income hypothesis by Keynes, relative income hypothesis (RIH) by Duesenberry, permanent income hypothesis (PIH) by Friedman, and the life-cycle hypothesis (LCH) by Modigliani. The objective of this study is to test the performance of the PIH as a description of consumption expenditure in the Nigerian economy using annual time series data over the period 1980-2015. Using the Partial Adjustment Model (PAM) and the Adaptive Expectation Model (AEM) the study found that there exist a long-run relationship between consumption and income thus suggesting that consumption function under the PIH holds for the Nigerian economy.
The study analyzed the relationship between external debt and the level of Economic Growth in Ethiopia for the period 1981/82 – 2014/15. Johansen co-integration test and Vector Error Correction Econometric Technique was applied by using data obtained from the National Bank of Ethiopia and Ministry of Finance and Economic Cooperation. Empirical results revealed that there was an indication of the “debt over-hang” problem and ‘crowding out’ effect of debt service, while the current external debt had a positive impact on real GDP growth during the study period. This is because the high accumulated debt would act as a dis-incentive to capital formation and the low level of domestic investment in the real sectors of the economy was not able to made positive impact on growth. Moreover, the payment on external debt soaked up resources obtained from loan and other sectors of the economy that otherwise channeled to development purpose, to serve pressing debt as returns from investment took a long time.
Nevertheless, to the extent that there is high resource gap between domestic saving and domestic investment in the country, to achieve some growth target, government may be forced to finance the gap by borrowing. However, as dependency on foreign resource is both risky and unreliable, the government should strengthen policies that encourage increased domestic saving, raise export earnings and create conducive environment for the inflow of foreign direct investment to finance the development activities. To reduce the “debt overhang” problem and crowding out effect of debt service on investment the government should pay debt on time and there should also be wise and proper utilization of foreign resources by investing on selective and productive investment.
There has been a significant expansion in the size of government expenditure in most economies around the world. Many studies have shown that there is a negative relationship between government size and economic growth after a certain point of government participation in the economy is reached. This study, therefore, examines the optimal size of government (measured by overall government spending as a percentage of GDP) that maximizes economic growth in Nigeria between the periods 1985-2014. The overall results suggest that the optimal level of government spending is 17% according to the Scully log-linear model and 24% according to the quadratic model making a conclusive range of 17%-24%. The paper concludes that further expansion in the size of government, proxied by government expenditure, is encouraged for improved growth since current spending is below the range suggested by the result of the analysis. However, the study may not boost of same outcome if government expenditure is disaggregated and the government size is measure by the revenue generated.